LAHORE BUSINESS SCHOOL

ASSIGNMENT
RETAIL MARKETING

SUBMITTED BY
ZOHAIB ASGHAR (BBA02103179)

SUBMITTED TO
SIR WAQAR- ul -QAYYUM

UNIVERSITY OF LAHORE

Independent store:
An independent retailer is one who builds his/her business from the ground up. From the business
planning stage to opening day, the independent retail owner does it all. He/she may hire consultants, staff
and others to assist in the business endeavor. The opportunities are endless.
Advantages:
There are no restrictions on who, how or where an entrepreneur should set up his/her business. The
freedom to do what one wants to do is the biggest advantage in this form of business. It can be extremely
fulfilling.
Disadvantages:
Because of the ease and flexibility of getting started, there can be a lot of competition in a particular area
for a certain type of customer. Every business decision rests on the owner(s). There is no branding, no
preset guidelines and a great deal of risk in this business model.

chain store
one of a chain of retail stores under the same management and selling the same merchandises.
Advantages

1.Lower selling prices. This is mainly possible due to economies in buying, operation etc.
2. Economy in advertising. Common advertisements covering all the units are feasible and this
reduces advertisement expenditure. Further, it is claimed, that one shop itself becomes an
advertisements for another.
3. Ability to spread risks. Unlike the departmental store the principle her is not to lay all the
eggs n one basket. By rial and error, a unit sustaining losses may be shifted to some other place
or be even dropped.
4. There is flexibility in working.
5. Sticking on oly to cash basis, bad debts are avoid together with detailed accounting processes.
6. Central and costly locations are not essential

Disadvantages Of Chain Stores

The disadvantages of multiple shops or chain stores are as follows:

1. More capital required
More capital needs to invest in multiple shops to establish and operate them in different parts of the
country. So, most of the producers cannot use this method to sell their products.
2. Limited range of products
Multiple shops sell only one or some limited kinds of products. Such shops cannot satisfy all the needs of
consumers. So, the consumers are found less interest in and unconcerned with multiple shops.
3. Problem of efficient staff
It becomes difficult to select, appoint, control and give responsibility to the employees in multiple shops.
The more number of shops increases the more difficulties appears in the operation of multiple shops.
Efficient employees cannot be found everywhere.
4. Lack of initiative
The employees working in multiple shops do not care for the sales and satisfaction of customers. They are
given certain salary but not bonus, profit or other facilities. So, they do not take personal initiative in their
works, nor are they interested in business.
5. Problem to customers
Customers have to face several problems and difficulties in multiple shops. There can not be found
selection facility, staff do not pay proper attention to customers and they do not behave customers as a
salesperson should do, they do not provide credit facility, nor do they provide home delivery facility.
6. Lack of freedom
Managers and other staff working under multiple shops do not get necessary freedom in operating of their
respective shop. They should act according to the direction, order and under the control of central office.
As a result, they cannot adopt free policy to operate their shops according to the local needs and situation
to increase sales.

franchise
A franchise is a right granted to an individual or group to market a company's goods or services within a
certain territory or location. examples of today's popular franchises are McDonald's, Subway.
Advantages of Franchise

Corporate image - The corporate image and brand awareness of the company is already
established. Consumers are always more comfortable purchasing items from a familiar name or
company they trust.

Training - The franchisor usually provides extensive training and support to the franchise owner.

Savings in time - Since the franchise company already has the business model in place you can
focus on running a successful business.

Disadvantages of buying a franchise

Buying a franchise means entering into a formal agreement with your franchisor. Franchise
agreements dictate how you run the business, so there may be little room for creativity.

There are usually restrictions on where you operate, the products you sell and the suppliers you
use.

Bad performances by other franchisees may affect your franchise's reputation.

Buying a franchise means ongoing sharing of profit with the franchisor.

Franchisors do not have to renew an agreement at the end of the franchise term.

Franchising is seen by many as a simple way to go into business for the first time. But franchising
is no guarantee of success and the same principles of good management - such as informed
decision-making, hard work, time management, having enough money and serving your
customers well - still apply

Lease store
an agreement in which a person or a business rents a store for a particular period of time: With dozens of
store leases expiring later in the year, more closures are anticipated throughout the retail chain
Advantages to leasing a business

setting up costs are usually lower than buying the premises

you can claim lease payments as business expenses

flexibility of relocating if there are problems with your lease

relocation is easier than depending on selling the property

Disadvantages to leasing a business premises:

rent money does not contribute to business assets or capital growth

you depend on your landlord if modification, fitting out or maintenance is needed

you cannot claim depreciation on the actual building

when relocating you may need to get the lease assigned to a new tenant

after the lease has been assigned to a new tenant, you can still be legally liable